Tip 7. Try virtual trading
Try virtual trading if you are new to stocks, options, futures.
Some brokerage companies offer customers a simulated environment, where one could trade with "virtual money", without putting their hard-earned money at risk. This is a fantastic way to learn how to trade stocks, ETFs, mutual ...
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Tip 8. Diversify your investments
Diversify investments with stocks, real estate, bonds, etc.
The old saying "Don't put all your eggs in one basket" is especially true when it comes to investing. If you put all your money in one type of investment, what is going to happen, when that one investment goes down in value? This ...
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Tip 9. Don't over-leverage
Learn from AIG and Lehman Brothers - treat leverage with caution.
For many people using margin to buy more stock or other investments can be tempting. Brokers generally have very good margin rates. Some will let you borrow at about fed funds + 1-2% if your margin balance is sufficiently high. While borrowing ...
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Tip 10. Have an exit strategy
Know at what price you'll take profit/loss BEFORE investing.
This is one of the most important lessons in investing in stocks (and some other assets): you have to know at what price you'll take a profit and, much more importantly, at what price you'll take a loss. "Buy and hold" rule might ...
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Tip 11. Know what you invest in
Don't risk money just because "everyone else is doing it".
A lot of good people got burnt in real estate because everyone else "seemed" to have been making money on it. Right now everyone is jumping back into stock market. This is called "lemming" or "crowd" mentality - doing something because ...
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Tip 12. Cut your expectations
I hate to say it, but it's really-really hard to get rich fast.
Are you getting into investing with the expectation that quick riches soon await? Hate to be a wet blanket, but unless you are extremely lucky, you will not make a fortune in the next year investing in any asset class. Such returns generally ...
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